International payments made easy for Indians as Paypal integrates with UPI - How will it work?

In a major boost to cross border digital payments for Indians, US-based PayPal integrated Unified Payments Interface (UPI) to its ecosystem.

The move, announced on Wednesday, will allow Indians to make payments via UPI internationally.

The global payments company, which is co-founded by Elon Musk, has announced PayPal World — a global platform that aims to connect the “world’s largest payment systems and digital wallets”.

The platform is set to launch in late 2025 and will begin with offering interoperability between PayPal and Venmo. PayPal World will also include UPI as part of its initial launch.

This will enable Indian consumers can now shop from international merchants and pay using the UPI option they are already familiar with.

The first payment systems and digital wallets that will launch with PayPal World include:

• Mercado Pago (MOU signed – further details being scoped)
• NPCI International Payments Limited (UPI)
• PayPal
• Tenpay Global
• Venmo

How to use UPI on PayPal?

UPI on PayPal will be active only after the launch of PayPal World in fall 2025. They will be able to use UPI as a payment mode while shopping with international merchant when they pay with PayPal.

This will ensure ease of payments, thanks to the familiarity of the UPI platform with Indians.

As part of PayPal World, PayPal and UPI will become seamlessly interoperable for the first time, expanding access to global peer-to-peer payments.

For example, if an Indian user browsing an online store in the United States wants to buy some clothes or other items, they can simply choose to pay with UPI. All they have to do is click on the PayPal option during checkout and a UPI button will appear, which will lead them to pay via that option.

This allows them to complete the transaction using their UPI account, just as they would for any domestic payment.

“The integration of UPI on PayPal World's platform will mark a significant step in expanding UPI's global footprint. It aligns with our vision to make cross-border payments more seamless, secure, and inclusive,” NPCI International Payments Limited MD and CEO Ritesh Shukla said, welcoming the UPI-PayPal partnership.